When exploring digital advertising, how
people watch, listen, read and shop online has become more fluid in recent
years, with ongoing channel fragmentation. Fortunately, no matter how niche customers’
interests, there are ways to adapt to changing tastes and behaviors. With
smarter tools and data-driven insights, businesses stand to develop advertising
strategies that deliver results.
It's particularly important for travel brands
to adapt, as they are not simply selling their services and products—they are curating
experiences. Travel brands and advertisers need to be aware that inspiration
can strike anywhere and anytime, including that singular spark that inspires
travelers to start planning a vacation. But a major obstacle for travel
marketers today is knowing how to reach consumers across a growing number of
channels.
The landscape of
travel planning has transformed in recent years. Today's travelers are discovering
inspiration through an expanding universe of digital touchpoints and content
creators, making their journey from dreaming to booking more complex than ever
before. This evolution is evident in how U.S. travelers now spend nearly nine
hours immersing themselves in travel content and research before making their
final decision, according to a study
by Expedia.
This shift in planning
behavior reflects a broader change in how people approach travel itself.
Americans are embracing travel with renewed enthusiasm, with an average of 3.2 leisure
trips per year according to Phocuswright. This behavior is particularly strong among
younger travelers: a recent survey study by Amazon Ads revealed that customers
who purchased travel products on Amazon are 1.5x more likely to have two trips
planned in the next six months. Additionally, 63% of
Amazon shoppers stated travel intent in next six months as “likely” or “very
likely.”
The appetite for
travel continues to grow, despite rising costs and changing budgets. There's a
sense of excitement, with 77% of global leisure travelers
eager to explore the world. This optimism is especially strong in the U.S., where travelers are
planning to both spend more and travel more
frequently in the coming year than they have in the past five years, according to tourism marketing
agency MMGY.
However, this
enthusiasm is tempered by practical considerations. While overall travel
budgets have increased, younger travelers, particularly those in Gen Z (born
between 1995 and 2012), are becoming more strategic in their spending. They're
finding creative ways to maximize their travel experiences while keeping their
budgets in check, with most maintaining
spending levels similar to or
slightly above their 2024 levels.
On top of this, differing habits—such as
the pursuit of authentic, meaningful experiences—are on the rise, upping the
requirement to cater to new tastes. To navigate these challenges, travel brands
need to refine their marketing strategies and adopt modern advertising
solutions. For example, artificial intelligence-powered tools can help brands
develop a deep understanding of audiences and then help them to optimize
visibility at the right time in the right places. This, coupled with
full-funnel marketing approach to stay in-step with consumers until final
booking, influencer partnerships for authentic, real-time engagement and more,
can help strengthen performance.
Redefining travel in an era of economic
complexity
As these brands adapt
to consumers’ shifting desires, they must also contend with the broader
landscape of economic changes, which can greatly influence travel decisions.
Redefining travel in
an era of economic complexity, inflation and rising travel costs are weighing
on decisions worldwide. According to an Accenture survey, more than half of consumers (54%) are feeling
unusually high levels of uncertainty—a sentiment that has doubled in the past
year.
Growing numbers, however, are willing to extend
their budgets to travel even as affordability concerns rise, the MMGY survey found.
While consumers navigating increasing costs and changing personal budgets,
travel continues to be perceived as a priority investment.
As a result, with travelers navigating
these challenges, they are more likely to book through indirect channels versus
brand-direct as they weigh options that best work for them. Online travel
agencies (OTAs) and metasearch websites, for example, collect and aggregate
deals from many sources so users can rapidly assess different
options and easily compare prices before going on to purchase.
With this abundance of interactions between
consumers and online content, brands need to find the tools to help increase
visibility in these diverse touchpoints at the right time.
Price sensitivity and its influences
As travelers seek more
value from their spending, they increasingly choose closer-to-home travel, particularly
across the U.S. market, where they prefer domestic city breaks and beach
vacations.
There are other ways to beat the budget: Travelers
are heading away off-season and increasingly opting for budget
or midscale hotels. As a result, travel companies will need to reassess the
timings of their campaigns or rethink the types of product offerings being
promoted in the face of shifting habits.
The prioritization of experiences
In addition to a rise in popularity for
domestic travel, global travel is holding steady, with 77% of respondents in an
American
Express Global Travel Trends report revealing they plan to take more or the
same number of international trips compared to last year.
But how people are traveling is changing,
and preferences continue to evolve as they become more financially savvy. In
Europe, holiday packages are declining as travelers build bespoke itineraries
that reflect their own values, according to new Phocuswright research.
And there is a rise in demand for meaningful
experiences, Booking.com also revealed in its 2025 Travel Predictions report. From baby
boomers taking on thrill-seeking adventures to men prioritizing mental
wellbeing on men-only retreats, travel is becoming more about self-discovery
and deep connections.
Many hospitality brands are embracing this
diversification, including Marriott, which acquired Postcard Cabins in response to
“guest demand for alternative accommodations in nature-forward destinations.”
The net result is that travel and
hospitality professionals face a challenge: Consumers are more selective, seeking
more variety and uniqueness; they are cost-conscious in the face of economic change
in the world but ready to stretch budgets for new destinations and
life-enhancing adventures.
The task is for travel brands to connect
the right content with travelers at the right moment, from first spark of
inspiration to final booking.
Ways to reach today’s
travel consumers
One way to get a clear picture of the
effectiveness of a brand's marketing efforts is by adopting a full-funnel
marketing approach. This method recognizes that consumers’ journeys have become
much more complex—the Expedia research found travelers view an average of 141
pages of travel content in the 45 days prior to booking a trip.
Leveraging a range of tools can drive
awareness and action at each stage of these complex journeys, and Amazon Ads offers
a combination of solutions that help travel companies reach new audiences at
the right time, thanks to trillions of shopping, streaming and browsing
signals.
Learning from data
As an example of how businesses can shape
connections, Amazon DSP (demand-side platform) allows
brands to programmatically buy ads to reach new and existing audiences,
wherever they spend time. It uses exclusive insights and shopping signals to
connect with the most relevant audiences, putting the brand in new places, whether
that is an ad during a podcast on Amazon Music or a radio station streamed
through an Amazon Alexa-enabled device. For example, signals show that Prime Video customers spend more on domestic
trips, being 1.4x more likely to have spent over $10,000 on domestic vacations
in the last 12 months than non-Prime Video customers. Valuable insights like
these can help shape relevant connections with audiences.
Emirates, for example, engaged digitally savvy travelers using Amazon DSP
to successfully promote its economy class offering across streaming TV, digital
and audio advertisements.
With Amazon Marketing Cloud (AMC), brands can easily
perform analytics and build audiences with pseudonymized Amazon Ads signals as
well as their own inputs. By using custom insights and AMC generated audiences
to optimize campaign tactics, they can clearly track what works across various channels
and optimize to strengthen impact.
From ad placements on Prime Video during
family movie night to remarketed messaging while listening to a favorite album,
travel sellers can be present with consumers whether they’re researching, seeking
inspiration or ready to book.
Advertising in the era of authenticity
One of the biggest evolutions in recent
years is the ongoing shift in experts and influencers stepping in as the main
source of inspiration in customers’ journeys. According to Phocuswright’s
Evolving Customer Journeys Transform Travel Marketing report, travel and
hospitality companies are increasingly harnessing local expertise and community
powered storytelling to make an impact.
“Creators have taken the world of social
commerce by storm, and travel is no exception,” states Phocuswright's report, The
Creator Effect: Harnessing the Power of Collaboration in Travel. Whether
choosing to take advice from a creator whose posts feel more down-to-earth or
those who are “more dreamy,” its survey found most users (74%) crave
authenticity.
Travel brands are taking note. Expedia recently launched a “trip matching” tool
allowing travelers to build an itinerary based on Instagram Reels and then book
it directly.
Amazon Ads today facilitates these types of
essential connections between travel companies and highly engaged audiences.
For example, brands can build influencer partnerships on global livestreaming
platform Twitch.
As well as gaming, Twitch features a range
of other topics, from lifestyle and fitness to art and music. IRL (or “In Real
Life”) ranks among the most popular channels. Every day, an average of 35
million users—nearly 70% of whom are between the ages 18 and 34, the
next-generation audience of Gen Z adults and younger millennials—tune in.
Tapping into shared passions and vibrant
communities opens the door to a range of use cases: a hotel working with a
well-known Twitch streamer to offer live walk-throughs of rooms to showcase a
property in ways many other digital platforms cannot replicate; an influencer
tasting local street food in Bangkok; an adventure tour operator teaming up
with a thrill-seeking content creator during a daring paraglide or zipline
experience; or a tourism board collaborating with a local Japanese celebrity chef
showcasing their culinary secrets to a hyper-engaged audience.
The value for the audience includes
authentic, real-time reactions that help build community.
Curated messaging, everywhere
Today's travelers seek value, authenticity
and experiences that break the mold—from point of inspiration while streaming
their favorite show to searching for the perfect vacation outfit, there are
countless digital touchpoints for brands to stay in-step with their customers.
And with just half of travelers having a specific destination in mind
when researching their vacation, there is still plenty of opportunity to
inspire travelers whose paths cross an ever-expanding digital world. With 63%
of Amazon shoppers rating the probability of traveling in the next three to six
months as “likely” or “very likely”—your customers are already gearing up to explore.
Amazon Ads solutions and insights-driven
tools help travel companies across all sectors connect with customers no matter
where they are. Whether they're watching, listening, reading or shopping, they
will be ready for the moment that inspiration strikes.
Learn more
Contact
Amazon Ads to learn how they are helping travel companies
across all sectors connect with customers.